Frequently Asked Questions
RAKauto Loans
1. What is a RAKauto Loan?
RAKauto is a loan granted solely for the purchase of a motor vehicle. It is an asset secured loan mortgaged to RAKBANK over a vehicle registered with the UAE Traffic Department.
2. In what currency is this loan available?
RAKauto Loans are available in UAE Dirhams only.
3. Who is eligible for a RAKauto Loan?
RAKauto Loans are offered to all UAE nationals, GCC nationals and expatriates holding a valid UAE residence visa. It is available for individuals as well as company purchases.
4. What is the criteria for RAKauto finance?
RAKauto Loan is a finance facility for new and used vehicles.
New vehicles are defined as first hand vehicles which are manufactured and sold during the same year through an authorized dealer in the country, and sold occasionally by reputed car dealerships and supported with proper documentation.
Used cars are second hand and above cars that exclude commercial vehicles, and must be evaluated from dealers as per RAKBANK’s approved list of dealers.
5. What vehicles will RAKBANK finance?
Standard vehicles, namely saloon cars and 4 wheel drives (passenger vehicles) and non-standard vehicles, namely sports and commercial vehicles up to 4.5 tons and luxury cars.
6. Can the car financed be registered in any Emirate?
Yes, the car can be registered anywhere in the UAE subject to the approval of both RAKBANK and the Traffic Department.
7. Is salary transfer mandatory to RAKBANK?
No, salary transfer to RAKBANK is not mandatory to obtain vehicle financing.
8. What is the minimum salary for RAKauto finance?
The minimum gross monthly salary is AED 5,000 for specific vehicle models.
9. Is a down payment required?
Customers to make 20% down payment. Certain approvals may be given with a specific percentage of down payment required from the customer.
10. What is the minimum age for a RAKauto Loan customer?
Minimum age requirements are 18 years and six months for registration and 20 years and six months for cheque payers.
11. What is the maximum age at loan maturity?
Maximum age at loan maturity is 60 years for expatriates and 65 years for UAE nationals.
12. What is the maximum loan tenor for RAKauto finance?
For existing RAKBANK customers, the maximum loan tenor is up to 60 months for new vehicles. For new customers, the maximum loan tenor is 60 months for new vehicles. For used cars, the loan tenor will depend on the age of the vehicle, which should be a maximum of 10-year cycle up to loan maturity.
13. What is the repayment method?
By standing order for existing RAKBANK customers and by Direct Debit from the customer’s account with any other Bank for non RAKBANK customers.
14. What is the insurance cover requirement?
Full comprehensive insurance cover is required for a minimum of the loan amount for a period of 13 months.
15. What other services are offered to RAKauto customers?
- Change of number plate
- Change of vehicle color
- Change of registration from one emirate to another
- Change of registered owner
- Temporary release of mortgage
- Change of post dated cheques
- Change of due date
- Change of address
- Loan deferment
- Temporary release letter
- Permanent release letter